Tennent’s owners C&C Group has revealed that Scotland’s best selling lager has grown market share in the Independent Free Trade and retail channels over the second half of its financial year (FY). The news, which appeared in a trading update for the 12 months to 28th February, also revealed that net sales revenues for Tennent’s are expected to be up 3% for the year, which compares to a decline of 4% last year. The figures are also well above the performance of the GB beer market which showed a decline of 2%, and takes into account weather-related disruption at the end of the financial period. The trading update also showed that Admiral Taverns has already contributed an additional €1.1 million to Group earnings with Group operating profit expected to come in at around €86 million for the full year.
Other highlights included the fact that Tennent’s in Scotland and its other super-premium brands grew revenues strongly; Magners returned to volume growth in the second half of the financial year with momentum building through the first year of its cider distribution partnership with AB-InBev, although it will still post flat volumes for the full year. Meanwhile Menabrea and Heverlee, increased volumes (+41%) for full year FY18.
The company stated, “The performance of our Scottish businesses and our growing super-premium portfolio has been encouraging in FY18 and both are well positioned to deliver further value growth in FY19. The introduction of minimum unit pricing of alcohol in Scotland this year may result in some short-term market disruption, but longer term will bring value to the category. While competitive pressures remain in Ireland, we expect performance to improve next year. In the UK, our strengthened route-to-market platforms of Admiral Taverns and AB InBev are now well-embedded. The outlook for the UK high street and consumer spending remains challenging but our brands and the predominantly wet-led, community pubs we serve are proving resilient.
The company stated, “The performance of our Scottish businesses and our growing super-premium portfolio has been encouraging in FY18 and both are well positioned to deliver further value growth in FY19. The introduction of minimum unit pricing of alcohol in Scotland this year may result in some short-term market disruption, but longer term will bring value to the category. While competitive pressures remain in Ireland, we expect performance to improve next year. In the UK, our strengthened route-to-market platforms of Admiral Taverns and AB InBev are now well-embedded. The outlook for the UK high street and consumer spending remains challenging but our brands and the predominantly wet-led, community pubs we serve are proving resilient.